Links for Monday, September 27, 2021

BUSINESS AND TECHNOLOGY:

China’s power crunch hits homes as factories face blackouts
China’s power crisis moves from the factory floor to homes / Bloomberg (paywall)
“China’s energy crisis is beginning to hit people where they live, adding the risk of social instability to an economic slowdown and global supply chain disruptions.”
Power crunch threatens Chinese economic growth, warn banks / FT (paywall)
“Strict emissions targets as well as rising coal prices are putting industry under pressure.”
China’s electricity curbs risk wider damage this time / WSJ (paywall)
“Particularly worrying: some of China’s most export-oriented, dynamic provinces are among the worst energy guzzlers, according to Beijing.”
Why China is facing a power crunch and what it means / Bloomberg (paywall)
China’s factories, households grapple with power cuts / AP
China State Grid vows to ensure people’s basic power supply / Reuters

After chairman and CEO’s arrest, HNA to get new funding for airline
HNA tells creditors it will receive $5.9 billion in strategic investment / Reuters
“China’s HNA Group will receive strategic investment of 38 billion yuan ($5.88 billion) after its restructuring, which will go to eleven of its entities including its flagship carrier Hainan Airlines.”
HNA restructuring moves ahead with $5.7 billion airline funding / Nikkei (paywall)
On Friday last week: HNA Chairman Chén Fēng 陈峰 and CEO Adam Tan (谭向东 Tán Xiàngdōng) were arrested on unspecified charges.

Elon Musk kisses the ring in China
China’s 8th World Internet Conference kicked off in Wuzhen, a water town in eastern China, on Sunday, with appearances by the heads of Alibaba, Xiaomi, Tesla, and Intel.

• Elon Musk touted China’s data protections via video address, nodding to this meeting’s theme of cybersecurity, and said all the data Tesla generates in China will remain in China.
• Alibaba, which was fined a record $2.75 billion in April, deepened its support for the “common prosperity” drive, pledging to train 200,000 rural Chinese for tech careers, its CEO said.

Medical imaging AI firm files for IPO
Shukun Beijing Network Technology Co. Ltd., which provides AI-assisted diagnostic tools, applied for a Hong Kong IPO on Wednesday. It’s the fourth medical AI firm to file this year.

• Shukun’s AI can model a patient’s organs based on a CT scan, giving doctors a detailed 3D representation that enables more accurate examination and diagnosis.
• The company has raised over 2 billion yuan ($309 million) since 2017 and is used in 80 of China’s top 100 hospitals.
• Shukun’s revenue skyrocketed 681% year-on-year to over $8 million in the first half of 2021, but losses also doubled to $13.5 million.

Evergrande’s EV unit is “short of funds”
China Evergrande Group’s electric car unit has a “serious shortage of funds,” per Bloomberg.

• The EV unit said on Friday that it has suspended paying some of its operating expenses and some suppliers have stopped working.
• The context: Evergrande NEV was one of Evergrande’s most valuable assets in early 2020, but since the firm ran into liquidity problems, it has tried to sell a stake in the unit to get some cash. It has yet to find a buyer so far.
• See also: Evergrande electric car division cancels Shanghai listing / FT (paywall)

Alibaba’s Amap launches Beijing Taxi
Beijing Taxi takes on Didi with Alibaba’s AutoNavi mapping service in a challenge to unlicensed ride-hailing / SCMP (paywall)
Alibaba’s Amap launches taxi ride-hailing platform in Beijing / TechNode
“Amap, Alibaba’s ride-hailing and map platform, rolled out a new taxi ride-hailing platform called ‘Beijing Taxi’ on Sunday. Amap is partnering with Beijing’s Taxicab and Livery Association and aims to digitize the city’s taxi services.”

China beefs up crypto crackdown as exchanges ban mainlander accounts
Chinese regulators are serious about crypto ban this time / Bloomberg (paywall)
Authorities said that “crypto transactions in China are banned and they will root out mining of digital assets.”
Cryptocurrency exchanges curb trading from China after Beijing’s warning / WSJ (paywall)
“Huobi Global said it stopped allowing new customers in mainland China to register accounts.”
Huobi to retire all mainland Chinese accounts by the end of 2021 / TechNode
Shares in crypto exchange Huobi slump as mainland users face expulsion / Caixin (paywall)
Cryptocurrency exchanges start cutting off Chinese users / FT (paywall)
Cryptocurrency exchanges scramble to drop Chinese users after Beijing’s ban / Reuters
Crypto recovery suggests players want to move past China ban / Bloomberg (paywall)
“China’s fiercest shot yet across the bows of the cryptocurrency world appears to have left investors mostly unruffled.”

New rules for young gamers
New limits give Chinese video gamers whiplash / NYT (paywall)
“China has a complex relationship with video games. New government rules for minors have made it even more so.”
China’s gaming body to bar local games on foreign platforms / Sixth Tone
“The agreement with over 200 domestic companies is aimed at controlling gaming addiction among young players.”

China reins in multiplying tech firms
China vows further curbs on ‘disorderly expansion’ by tech firms / Bloomberg (paywall)
“China will take further steps to rein in internet companies, a senior cyberspace official said, citing the shared economy, online health care and smart delivery as areas of concern.”
China’s assault on Big Tech’s ‘walled gardens’ / Caixin (paywall)
“China’s months-long regulatory campaign targeting the tech sector is taking aim at a common practice that leading industry players deploy to foil rivals — blocking external links, which regulators consider anti-competitive.”

The Evergrande saga continues
How China plans to avert an Evergrande financial crisis / NYT (paywall)
Chinese cities seize Evergrande presales to block potential misuse of funds / FT (paywall)
Evergrande pain spreads to wealthy investors as more interest payments missed / Bloomberg (paywall)
“Rich trust buyers join 70,000 retail investors who suffered losses and are demanding their money back.”
Evergrande could raise $600 million selling life insurance stake / Bloomberg (paywall)
Evergrande’s troubles show China is just as susceptible to capitalism’s ill effects / FT (paywall)
Evergrande worries help fuel selloff at Chinese developer Sunac / WSJ (paywall)
“Investors sold down securities after leaked draft showed Sunac China Holdings unit wants respite from tough government measures.”
China steps up anti-corruption drive as Evergrande crisis puts spotlight on financial risk / SCMP (paywall)
“China’s top anti-corruption official will launch a nationwide audit of major financial firms and regulators to eliminate risk in the sector.”

Deadly e-bikes
Fatal e-bike explosion highlights lack of safe charging options / Caixin (paywall)
“Two recent e-bike battery fires in China’s capital — one of which turned deadly — have put a spotlight on the limited options for riders to safely charge their bikes in the world’s largest market for the vehicles, as authorities step up bans on doing so at home.”

Another huge electric car deal
Electric car maker Polestar to go public via $20 billion SPAC deal / FT (paywall)
“The deal would rank Polestar, which was founded four years ago by Volvo Cars and its Chinese owner Geely, as one of the most valuable electric vehicle companies to list through a Spac.”
Leonardo DiCaprio-backed Polestar valued at $20 billion in SPAC deal / Bloomberg (paywall)

The plastic surgery crackdown
China bans TV, radio advertisements for medical beauty loans / Reuters
Earlier this month: Investors bet China’s cosmetic surgery industry is next on regulators’ hit list / FT (paywall)

China fights off intellectual property theft
China wields new legal weapon to fight claims of intellectual property theft / WSJ (paywall)
“Chinese technology giants have seized on a new legal tactic to fight claims of intellectual property theft, raising concerns in the U.S. that Beijing’s promises to strictly enforce patent and copyright laws will be undermined by Chinese courts.”

Moutai boss behind bars, but investors love the company
Moutai adds $32 billion to market value on best day in six years / Bloomberg (paywall)
On Friday last week: Yuán Rénguó 袁仁国, former chairman of Kweichow Moutai Group, was sentenced to life in prison for taking bribes.

Neuberger Berman the third foreign firm to get a full mutual fund license
China awards wholly owned mutual fund license to third foreign firm / Caixin (paywall)

IPOs in Hong Kong and Shanghai
CNOOC plans $5.4 billion Shanghai listing after U.S. sanctions / Bloomberg (paywall)
China’s CNOOC plans big share sale at home as U.S. delisting looms / WSJ (paywall)
Prudential raises $2.4 billion from Hong Kong offering / Bloomberg (paywall)
Chinese sportswear startup Peak raises $232 million as it aims for IPO / Nikkei Asia (paywall)

SCIENCE, HEALTH, AND ENVIRONMENT:

China’s flagged fishing fleet
Great Wall of Lights: China’s sea power on Darwin’s doorstep / AP
“An armada of nearly 300 Chinese vessels that have sailed halfway across the globe to lure the elusive Humboldt squid from the Pacific Ocean’s inky depths.”
Takeaways from AP and Univision China fishing investigation / AP

Will China replace its green car credit system?
China’s green car credit system to be replaced as country pursues carbon neutrality / Reuters
“China may replace its green car credit system with a new policy focusing more broadly on reducing carbon emissions, industry executives say.”

A new satellite to the sun, named by China’s public
China to launch its first satellite to the sun, and wants public to name it / SCMP (paywall)

COVID-19 origins panel disbanded
COVID-19 panel of scientists investigating origins of virus is disbanded / WSJ (paywall)
“Columbia University professor Jeffrey Sachs said he has disbanded a task force of scientists probing the origins of COVID-19 in favor of wider biosafety research.”

POLITICS AND FOREIGN AFFAIRS:

China tightens up abortion rules for women
China tightens abortion controls as population crisis looms / FT (paywall)
“China is tightening controls over abortions for ‘non-medical purposes’ as policymakers heap pressure on women in their battle to counter a demographic crisis.”
China to reduce abortions as part of new guidelines for women / Bloomberg (paywall)
China to reduce abortions for ‘non-medical purposes’ / Reuters

Seized assets of the detained in Xinjiang sold by the state
China’s Xinjiang crackdown reaps millions of dollars in assets for the state / WSJ (paywall)
“Chinese authorities have seized and sold at auction tens of millions of dollars in assets owned by jailed Uyghur business owners amid a broad government campaign to assimilate ethnic minorities in the country’s northwest Xinjiang region.”

What does Germany’s reshuffle mean for China?
Are China and Germany poised for business as usual after Merkel? / SCMP (paywall)
“As Germany braces for months of wrangling over a coalition, China hopes the new leadership will retain the ‘balanced’ approach of the Merkel era…Though parties hawkish on China are certain to share power in Berlin, analysts are united in their belief that economic pragmatism will win the day.”

Hong Kong pro-democracy asylum seeker’s parents arrested
Chinese asylum-seeker’s parents arrested by Chongqing state security police / RFA
“A Chinese national who fled China after supporting the pro-democracy movement in Hong Kong to seek political asylum in the Netherlands says his father has been arrested by police in his home city of Chongqing.”

No exam shortcuts for students with special talents
China to revoke ‘gaokao’ privilege for students with special talents / Sixth Tone
“Authorities said those who excel in sports and arts would no longer have ‘shortcuts’ to the college entrance exam in the future.”

Beijing flaunts governance model and air power
Communist Party mouthpiece touts ‘influence’ of China’s governance model / SCMP (paywall)
“People’s Daily says other nations are looking to the country to learn from its success, calling its rise ‘unstoppable’ and decline of the West ‘irreversible.’”
China’s biggest air show to display self-sufficiency drive, military prowess / Reuters
“China’s drive for self-sufficiency in aerospace and its growing military prowess will be on display at the country’s largest air show this week, in an event set against the backdrop of the coronavirus pandemic and trade frictions with the West.”

Hong Kong Tiananmen vigil organizers disband under Party pressure
Hong Kong Tiananmen massacre vigil organizers disband in face of CCP pressure / RFA
Hong Kong June 4 vigil organizers to disband amid crackdown / AP
China accuses U.S. of ‘undermining stability’ as vigil organizers consider disbanding / RFA
“The ruling Chinese Communist Party underscores its claim that Hong Kong’s pro-democracy protests were fomented by foreign powers.”

Taiwan tensions over new opposition leader, U.K. warship
China condemns Britain for sailing warship through Taiwan Strait / Reuters
U.K. warship transits Taiwan Strait for first time since 2019 / Bloomberg (paywall)
China’s Xi warns of ‘grim’ Taiwan situation in letter to opposition / Reuters
Under China pressure, Taiwan opposition chooses new leader / AP

Japan calls China, Russia, and North Korea “cyberspace threats”
Japan names China, Russia and North Korea as cyberspace threats / Nikkei Asia (paywall)

A look into Australia’s anti-China turn
Australia took on China. Did it get it right? / NYT (paywall)
“The country is wrestling with the political and economic consequences of its sharp turn in policy and tone — including an erosion of tolerance.”

China-EU move to standardize “sustainable finance”
Beijing, Brussels set to issue common standards for sustainable finance this year, PBOC official says / Caixin (paywall)
China and the EU move “to make it easier for companies to issue green bonds and other such investment products in foreign markets.”

Finland reports widespread espionage activity
Finland reports widespread espionage around politics, high tech / Bloomberg (paywall)
“The activity originates from Russia and China in particular and is intended to secure ‘insights into the preparation of major policy positions and details of state-of-the-art technology,’ the organization said in an update on Monday.”

U.S. eyes Latin America projects to rival China’s Belt and Road
Biden aims to rival China’s Belt and Road in Latin America / Bloomberg (paywall)
“The Biden administration is considering a U.S.-led competitor for China’s Belt and Road international trade and public works program, and a top White House official will scout Latin America next week for possible projects.”
U.S. plans projects in Latin America countering China’s Belt and Road / Reuters

Xí Jìnpíng 习近平, the top tiger parent
Xi Jinping may be the world’s fiercest tiger parent / FT (paywall)
By Leo Lewis, on how “the Chinese president’s ambitions for the state means each month brings a new, landscape-altering surprise from Beijing.”

SOCIETY AND CULTURE:

Online platforms ban “female Buddhist socialite” influencers
Chinese social sites ban online influencers capitalizing on Buddhism / Sixth Tone
“Several state media outlets have criticized the trend dubbed ‘foyuan’ for turning religion into a profit-making tool.”

200,000-year-old handprints
How the world’s oldest artwork was uncovered in Tibet / Sixth Tone

Obituary for Jonathan Mirsky
Jonathan Mirsky, journalist and historian of China, dies at 88 / NYT (paywall)

China’s National Games torch heads south
China’s National Games torch passes to Hong Kong, Macau and Guangdong / SCMP (paywall)

Teaching safe sex to China’s gay migrants
Taking to the streets to teach China’s gay migrants about safe sex / Sixth Tone
“Grassroots organizations, many of them started and staffed by gay men, are doing the oft-neglected work of outreach in migrant communities.”

Restoring an old Tibetan temple ​​
Breathing new life into the Jebum-Gang Temple / Sixth Tone
“The redesign aimed to restore and preserve Jebum-gang’s main building as much as possible, while making room for a modern space that could attract shows from artists around the country and the world.”